A Terms and Conditions (T&C) agreement is one of the most underrated yet essential aspects to a business. You’ve probably heard the phrase flung around when buying products or services or in an advertisement, but have you considered implementing a Terms and Conditions Agreement for your own business?
Continue reading to build your understanding of this legally binding contract, and find out why it is so important to work with a business lawyer to make one!
What is a Terms and Conditions agreement?
A Terms and Conditions agreement is a document which sets out the legal rights and responsibilities of all parties involved in a business, from the business owner to the business’ clients. A Terms and Conditions agreement is also commonly referred to as Terms of Service or Terms of Use. In the case of legal disputes, a Terms and Conditions agreement is used by the court to assess the validity of the complaint.
Usually drafted by business lawyers or with extensive legal advice, Terms and Conditions agreements will include sections on issues such as:
- Liability. A Terms and Conditions agreement will limit the business’ liability, as disclaimers will be included to remove the responsibility for small errors in the business’ products and services. For businesses with websites, a Terms and Conditions agreement will also remove accountability for misuage of services or business content by the client/
- Copyright. A copyright notice should be included in a business’ Terms and Conditions to protect their original concepts, content and products. A Terms and Conditions agreement will thus effectively protect a business’ intellectual property rights.
- Returns and refunds policy. A returns and refunds policy can be outlined within a Terms and Conditions agreement to act as a detailed guide for business and client actions in cases where a customer is unsatisfied with the product or service and requires a refund.
Why is it important to have a Terms and Conditions agreement?
It is important for every business to have a Terms and Conditions agreement because it ensures businesses retain the rights to their own content as well as protect themselves from the actions of their clients or other involved parties.
Without a Terms and Conditions agreement, third parties will be able to take advantage of a business’ products and services, potentially misuse it and may even perform illegal acts with them while deeming the business as responsible. Thus, it is imperative for all businesses to draft a legally binding Terms and Conditions agreement for their own safety.
Businesses will also need to learn how to enforce their Terms and Conditions agreement. Simply reading it is often not enough, clients will need to have been documented as acknowledging the Terms and Conditions. This can be done in the sign-in page of websites, or when signing a physical document at a business’ point of practice.
Thus, investing in a commercial lawyer to guide you through the steps of creating a Terms and Conditions agreement, as well as how to enforce it with all business-related clients for most businesses.